Activity 2 .

Problems

1. At year-end, Myra Company reported cash and cash equivalents which comprised the
following:
Cash on hand 500,000
Demand deposit 4,000,000
Certificate of deposit 2,000,000
Postdated customer check 300,000
Petty cash fund 50,000
Traveler’s check 200,000
Manager’s check 100,000
Money order 150,000
What total amount should be reported as “cash” at year-end?
a. 7,000,000
b. 4,800,000
c. 6,800,000
d. 5,000,000

Everlast Company reported the following information at year-end:

 Share investment of 1,000,000 that are very actively traded in the stock market
 Government treasury bills of 2,000,000 with a 10-year term but purchased on
December 31 at which time they had two months to go until maturity.
 Cash of 3,400,000 in the form of coin, currency, saving account and checking
account.
 Commercial papers of 1,500,000 with term of nine months but purchased on
December 31 at which time they had three months to go until maturity.

2. What total amount should be reported as cash?

a. 3,400,000
b. 4,900,000
c. 4,400,000
d. 5,400,000
3. What total amount should be reported as cash equivalent?
a. 2,000,000
b. 1,500,000
c. 3,500,000
d. 4,500,000

4. Burr Company had the following account balances at year-end:

Cash in bank 2,250,000
Cash on hand 125,000

Cash restricted for addition to plant end

Expected to be disbursed next year 1,600,000

Cash in bank included 600,000 of compensating balance against short-term borrowing

arrangement.
 The compensating balance is not legally restricted as to withdrawal.
What total amount of cash should be reported under current assets at year-end?
a. 1,775,000
b. 2,250,000
c. 2,375,000
d. 3,975,000

5. Ral Company reported the checkbook balance on December 31, 2018 at 5,000,000 and held
the following items on same date:
Check payable to Ral, dated January 2, 2019 in payment of a sale
Made in December 2018 not included in December 31
Checkbook balance 2,000,000
Check payable to Ral, deposited December 15 and included
In December 31 checkbook balance, but returned by bank
On December 30 stamped “NSF”. The check was redeposited
On January 2, 2019 and cleared on January 9, 2019 500,000
Check drawn on Ral’s account payable to a vendor, dated
And recorded in Ral’s book on December 31, 2018
But not mailed until January 10, 2019 300,000
Certificate of time deposit 1,000,000
What amount should be reported as cash on December 31, 2018?
a. 4,800,000
b. 5,300,000
c. 6,500,000
d. 5,800,000

6. Timex Company reported petty cash fund which comprised the following:
Coins and currency 3,300
Paid vouchers:
Transportation 600
Gasoline 400
Office suppliers 500
Postage stamps 300
Due from employees 1,200 3,000
Manager’s check returned by bank marked “NSF” 1,000
Check drawn by the entity to the order
Of petty cash custodian 2,000

What is the current amount of petty cash fund for statement presentation purposes?
a. 10,000
b. 7,000
c. 5,00
d. 9,000

7. Liwanag Company reported an impress petty cash fund of 50,000 with the following details:
Currencies 20,000
Coins 2,000
 Petty cash vouchers:
Gasoline payment for delivery equipment 3,000
Medical supplies for employees 1,000
Repairs of office equipment 1,500
Loans to employees 3,500
A check drawn by the entity payable to the order of Grace
De la Cruz, petty cash custodian, representing
Her salary 15,000
An employee check returned by the bank for insufficiency
Of fund 3,000
A sheet of paper with names of several employees together
With contribution for a birthday gift of a co-employee,
Attached to the sheet of paper is a currency of 5,000
What amount of petty cash fund should be reported in the statement of financial position?
a. 42,000
b. 27,000
c. 37,000
d. 22,000

8. Tranvia Company had the following balances on December 31, 2018

Cash In checking account 350,000
Cash in money market account 750,000
Treasury bill, purchased November 1, 2018
Maturing January 31, 2019 3,500,000
Time deposit purchased December 1, 2018
Maturing March 31, 2019 4,000,000
What amount should be reported as cash and cash equivalent on December 31, 2018?
a. 1,100,000
b. 3,850,000
c. 4,600,000
d. 8,600,000

9. Pygmalion Company had the following balances on December 31, 2018:

Cash in bank – current account 5,000,000
Cash in bank – payroll account 1,000,000
Cash on hand 500,000
Cash in bank – restricted account for building
Construction expected to be disbursed in 2019 3,000,000
Time deposit, purchased December 15, 2018 and
Due March 15, 2019 2,000,000
The cash on hand included a 200,000-check payable to Pygmalion date January 15, 2019.
What total amount should be reported as cash and cash equivalents on December 31, 2019?
a. 6,300,000
b. 8,300,000
c. 6,500,000
 d. 8,700,000

10. Yasmin Company provided the following information on December 31, 2018
Petty cash fund 50,000
Current account – First bank 4,000,000
Current account – Second bank (overdraft) (250,000)
Money market placement – Third bank 1,000,000
Time deposit – Fourth bank 2,000,000

 A check of 100,000 was drawn against First bank current account dated and
recorded December 29, 2018 but delivered to payee on January 15, 2019.
 The Fourth bank time deposit is set aside for land acquisition in early January 2019.

What total amount should be reported as cash and cash equivalents on December 31, 2018?
a. 5,050,000
b. 5,150,000
c. 4,900,000
d. 4,150,000

11. Karla Company provided the following information on December 31, 2018:
Cash on hand 500,000
Security bank and current account 1,000,000
PNB current account No. 1 400,000
PNB current account No. 2 (overdraft) (50,000)
BSP treasury bill – 60 days 3,000,000

 The cash on hand included a customer postdated check of 100,000 and postal
money order of 40,000.
 A check of 200,000 in payment of account was drawn against Security Bank account,
dated January 15, 2019, delivered to the payee and recorded December 31, 2018.

What total amount of cash and cash equivalents should be reported on December 31, 2018?
a. 4,950,000
b. 5,050,000
c. 4,750,000
d. 1,950,000

12. On December 31, 2018, Erika Company reported cash account balance per ledger of
9,500,000 which included the following:
Cash in bank – demand deposit 3,000,000
Time deposit – 30 days 500,000
NSF check of customer 200,000
Money market placement due on June 30, 2019 2,000,000
Saving deposit 1,000,000
IOU from an employee 300,000
Pension fund 1,500,000
Customer check dated January 31, 2019 600,000
Customer check outstanding for 18 months 400,000
 9,500,000
 Check if 100,000 in payment of accounts payable was dated and recorded on
December 31, 2018 but mailed to creditors on January 15, 2019.
 Check of 300,000 dated January 31, 2019 in payment of account payable was
recorded and mailed December 31, 2018
 The cash receipts journal was held open until January 15, 2019, during which time
200,000 was collected and recorded on December 31, 2018.

What total amount should be reported as cash and cash equivalents on December 31, 2018?
a. 4,700,000 (3,000,000+100,000+300,000-200.000)
b. 6,700,000
c. 4,900,000
d. 5,100,000

13. On December 31, 2018, Roma Company reported cash of 9,950,000 with the following
details:
Undeposited collections 600,000
Cash in bank – BDO checking account 4,000,000
Undeposited NSF check received from customer,
Dated December 1, 2018 150,000
Undeposited check from a customer,
Dated January 15, 2019 250,000
Cash in bank - BDO fund for payroll 1,000,000
Cash in bank – BDO money market instrument, 90days 2,000,000
Cash in foreign bank restricted 1,500,000
Cash in bank – BDO value added tax account 450,000
Total 9,950,000

On December 31, 2018, what total amount should be reported as cash and cash
equivalents?
a. 7,600,000
b. 8,200,000
c. 6,050,000
d. 8,050,000

Love Company reported the following information in relation to cash on December 31, 2018:
 Checkbook balance, 4,000,000
 Undeposited collections, 400,000
 A customer check amounting of 200,000 dated January 2, 2019 was included in the
December 31, 2018 checkbook balance.
 Another customer check for 500,000 deposited on December 22, 2018 was included
in the checkbook balance but returned by the bank for in sufficiency of fund.
This check was redeposited on December 26, 2018 and cleared two days later.
 A 400,000-check payable to supplier dated and recorded on December 30, 2018 was
mailed on January 16, 2019.
 A petty cash fund of 50,000 comprised the following on December 31, 2018:
 Coins and currencies 5,000
Petty cash vouchers 40,000
Refundable deposit for returnable containers 5,000
50,000
 A check of 40,000 was drawn on December 31, 2018 payable to Petty cash.
14. What is the adjusted cash in bank on December 31, 2018?
a. 4,600,000
b. 4,200,000
c. 4,400,000
d. 3,700,000

Checkbook balance 4,000,000

Postdated customer check erroneously included (200,000)
Undelivered check payable to supplier 400,000
Adjusted cash in bank 4,200,000

15. What total amount should be reported as cash on December 31, 2018?
a. 4,645,000
b. 4,845,000
c. 4,600,000
d.
e. 4,650,000
Cash in bank 4,200,000
Cash on hand-undeposited collections 400,000
Petty cash fund (5,000+40,000) 45,000
Total cash 4,645,000

16. Campbell Company had the following account balances on December 31, 2018:
Petty cash fund 50,000
Cash in bank – current account 4,000,000
Cash in bank – payroll account 1,200,000
Cash in bank – sinking fund 2,000,000
Cash on hand 500,000
Cash in bank – restricted account for plant addition
And expected to be disbursed in 2019 1,500,000
Treasury bills 1,000,000

The petty cash fund included unreplenished December 2018 petty cash expense vouchers
5,000 and employee IOU 5,000.

The cash on Hand included a 100,000-customer check payable to Campbell dated January
15, 2019.

In exchange for a guaranteed line of credit, the entity has agreed to maintain a minimum
balance of 200,000 in the unrestricted current bank account.

The sinking fund is et aside to settle a bond payable that is due on June 30,2019
What total amount should be reported as cash and cash equivalents on December 31, 2018?
a. 8,640,000
b. 7,440,000
c. 7,640,000
d. 5,640,000
a. 2,780,000

Petty cash fund 40,000

Cash on hand 400,000
Current account 4,000,000
Payroll account 1,200,000
Sinking fund 2,000,000
Treasury bills 1,000,000
Total cash and cash equivalents 8,640,000

Petty cash 50,000

Unreplenished petty cash vouchers (5,000)
Employee IOUs (5,000)
Adjusted petty cash fund 40,000

Cash on hand 500,000

Customer check postdated January 31, 2019 (100,000)
Adjusted cash on hand 400,000